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Long-Term Investment Portfolio Optimization: Stocks for Growth vs. Dividend Reinvestment

The objective of this project is to identify the top 10 stocks for long-term investment based on growth potential and the top 10 stocks for dividend reinvestment over a 20-year period. Additionally, the project aims to create a combined portfolio and compare its performance with the individual growth and dividend portfolios.

With a 100usd budget for 10 stocks, we'll create a forecast of future prices and total value/return of the monthly 10usd investment for each stock both in growth, and dividend stocks.

DATA COLLECTION and PREPARATION

We used chatgpt to suggest us the top 20 stocks for each portfolio category. And then using the yfinance api, we collected the data we needed for the project.

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Formula for price change

((New price - Old price)/Old price) * 100

Formula for Percent Yield

[(End Price - Start Price) / Start Price] * 100

Volatility Guidelines

  • Volatility below 20% is often considered low.
  • Volatility between 20% and 40% is considered moderate.
  • Volatility above 40% is considered high.

My personal risk tolerance suggests to select growth stocks with volatility between 40% to 80%

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IDENTIFYING GROWTH STOCKS

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Forecasting the Future Value of a $10 Monthly Investments for Growth Stocks

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